The Pennant Group (Nasdaq: PNTG) is greater than midway to reaching its objective of constructing a pipeline of 100 CEOs.

The corporate introduced that it has added greater than 50 CEOs in coaching, and 38 native leaders have earned C-level designations of their operations. Pennant CEO Brent Guerisoli famous that management growth has been one of the essential keys to the corporate's success.

“As we beforehand defined, CEOs and different C-level leaders earn this title by appearing as true house owners in creating vital monetary, medical and cultural worth,” Guerisoli mentioned in the course of the firm's fourth-quarter earnings name. “We discovered that CEOs sometimes generate roughly $1 million extra in annual income than non-CEO executives, coupled with higher medical and cultural outcomes.”

Eagle, Idaho-based Pennant is a holding firm of independently operated subsidiaries throughout the U.S., with a community that features 104 house well being and hospice businesses and 51 senior dwelling communities.

Guerisoli made it clear that Pennant isn’t just centered on coaching and educating operational leaders. The corporate additionally has its sights set on future medical leaders.

“We’re making related investments in future medical leaders to assist create chief medical remedy and wellness officers in native operations,” he mentioned. “Our medical onboarding, coaching and growth applications have been strengthened and enhanced in 2023, and 16 medical leaders have been elevated to C-level standing, driving glorious high quality outcomes and affected person and resident satisfaction.”

Along with management growth and medical excellence, Pennant additionally revealed the three different strategic focus areas: worker expertise, margin enchancment and development.

Final 12 months, Pennant noticed enchancment when it got here to worker engagement and recruitment. Particularly, the corporate achieved a double-digit enchancment in gross sales share. The corporate additionally surpassed 6,000 staff, a double-digit share improve in comparison with 2022.

Pennant's adjusted consolidated EBITDA margin additionally improved 80 foundation factors 12 months over 12 months.

From a development perspective, the corporate's income elevated by $71.7 million in 2023. Three-quarters of this was natural same-store development.

Through the name, Pennant additionally offered an replace on the corporate's efforts associated to the Dwelling Well being Worth-Primarily based Buying (HHVBP) mannequin.

“As a part of the growth of CMS' value-based buying program for house well being care, we’re rigorously monitoring and managing efficiency towards the value-based buying standards,” mentioned John J. Gochnour, president and COO of Pennant. “Primarily based on preliminary knowledge, we’re effectively positioned to leverage the optimistic monetary incentives this system creates to reward suppliers who ship distinctive worth and medical outcomes.”

General, Pennant's full-year 2023 income was $544.9 million, up 15.1% in comparison with 2022.

Within the fourth quarter, Pennant's income was $146.0 million, up 17.1% in comparison with the identical interval in 2022.

The corporate's full-year 2023 house well being and hospice companies income was $394.5 million, up 15.3% from the prior 12 months. For the fourth quarter, this section introduced in $106.9 million, up 17.9% from the prior 12 months quarter.

The corporate attributes this development to robust momentum on the hospice facet. Pennant additionally sees regular development within the house care discipline, in accordance with Gochnour.